Wednesday, September 16, 2009

The financial crisis would have happened even if Lehman Brothers was bailed out Nouriel Roubini

US Economy is Facing Death by a Thousand Cuts says Roubini

The financial crisis would have happened even if Lehman Brothers was bailed out, Nouriel Roubini, chairman of, told CNBC. He discusses the anniversary of the firm's collapse and the state of global financial markets.
"It's going to be death by a thousand cuts," said Roubini, chairman of RGE Monitor and economics professor at New York University's Stern School of Business. "The financial system is severely damaged, and it's not just the banks."

Roubini predicted more than 1,000 financial institutions could fail before all is said and done.

"The gap between supply and demand is so huge we could stop producing new homes for a year to get rid of all the inventory," Roubini added. "This price adjustment, in my opinion, is going to continue for another year."

"We already were in the middle of a very severe crisis. Saying that bailout out Lehman, everything would have been OK, is nonsense" he said. "Lehman was a symptom of the crisis, not the cause of the crisis."

1 comment:

Toronto Home Staging said...

It's easy to ponder about the causes of this crisis now. The financial system in the US is terrible and everyone knows it. It's bound to fail all over again and again because it can't cope with the massive debt it produces. So no matter how many banks bankrupt, this crisis will happen again and again until someone realizes that a bigger change is needed. Thanks for the article,


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